Abu Dhabi National Energy Company PJSC (“TAQA”, the “Company” or the “Group”) announced, , its earnings for the second quarter of 2020.
Group revenues declined 28% to AED 3.3 billion for the quarter, reflecting the COVID-19 pandemic’s ongoing adverse impact on energy markets. Realized prices for oil and gas sold by TAQA dropped 62% compared to the same period last year. Revenues for TAQA’s contracted power and water generation business in the UAE were unchanged on the same period last year whilst within the international power business, revenue and costs declined reflecting lower demand.
Group EBITDA fell 27% to AED 1.8 billion, with declining revenues partially offset by lower operating expenses within both the oil and gas and power and water businesses. The Group lowered operating expenses by deferring non-critical activities in response to the challenging economic environment.
The net loss attributable to TAQA’s shareholders for the Q2 2020 period was AED 205 million compared to a net profit of AED 208 million for the prior-year period. TAQA’s liquidity at quarter-end remained strong at AED 11.0 billion, including AED 4.6 billion in cash and cash equivalents and AED 6.4 billion of undrawn credit facilities. This quarter reflects financials prior to TAQA’s transaction with Abu Dhabi Power Corporation, which was completed on July 1, 2020 and will therefore be reflected in the third quarter results.
As a result of the transaction, TAQA is now a top-10 integrated utilities leader in the EMEA region by regulated assets and one of the largest publicly listed companies in the UAE by market capitalization. More than 85% of TAQA’s revenues and EBITDA will be driven by long-term contracts or regulated tariffs, significantly increasing the Company’s resilience to commodity price volatility.
“We are excited to embark on our new journey as a globally leading, fully integrated utilities champion,” said Jasim Husain Thabet, TAQA’s newly appointed Group CEO and Managing Director. “TAQA will continue to play a leading role in the UAE’s energy market, with a range of large-scale projects in development, including the world’s largest solar photovoltaic plant, the world’s largest sea-water reverse osmosis plant, and the UAE’s largest gas-fired independent power project. As we look ahead, TAQA’s new transmission and distribution businesses will complement its expanded generation business, supporting efficient delivery of power and water to those we serve in Abu Dhabi and beyond.”
Commenting on the Company’s quarterly performance, Saeed Al Dhaheri, Deputy CEO of TAQA, said: “We remain focused on running sustainable operations across the full range of our assets, while prioritizing the health and safety of our staff. Nonetheless, our financial performance continues to be affected by the COVID-19 pandemic, which has curbed commodity prices. However, as a fully integrated utilities company, with an enlarged contracted business and significant new regulated assets, we are confident in our ability to face future challenges with resilience, financial muscle and an unwavering commitment to those we serve across our 11 countries.”
